Siltronic (WAF) Q4 2024 earnings summary

Executive summary

• Achieved 2024 guidance at the upper end despite subdued demand, maintaining a resilient EBITDA margin of 26% and stable market share.

• Sales declined 7% year-over-year to EUR 1.4 billion, mainly due to lower prices, mix, and wafer area, but Q4 outperformed expectations.

• Cost and cash management measures included labor cost adjustments, hiring freeze, and reduced CapEx payments.

• New Singapore FAB ramp-up is progressing, with major customer qualifications expected by mid-2025.

• Prepared for growth through R&D, customer collaboration, and leading-edge technology.

Financial highlights

• Full year EBITDA was EUR 364 million, down EUR 70 million from 2023, with EBIT at EUR 125 million.

• Net income decreased to EUR 67.2 million, with a group tax rate rising to 33% due to deferred tax effects.

• Net financial debt increased to EUR 734 million, driven by high CapEx and payment overhangs.

• CapEx for 2024 totaled EUR 523 million, with a reduction to EUR 350–400 million targeted for 2025.

• Earnings per share at EUR 2.10, compared to EUR 6.15 in FY 2023.

Outlook and guidance

• 2025 sales expected to be flat versus 2024, with negative price impact and small diameter wafer production discontinued from July.

• H1 2025 revenue expected to be down high single digits from H2 2024, with improvement in H2.

• EBITDA margin guidance for 2025 is 22–27%; EBIT expected to be significantly lower and negative due to new FAB depreciation.

• CapEx to further reduce in 2025, with net cash flow improving but remaining negative.

• No capital increase planned for 2025.